Flutter Earnings Preview: Will FanDuel Market Share Continue To Grow?

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The London-listed parent of FanDuel will report its first-half earnings early Wednesday morning on the East Coast.

The FanDuel story is not about potential profitability like the US-listed sportsbooks. Flutter CEO Peter Jackson said on the first-quarter call that the company is confident in a profitable 2023 for the business and is more excited to see how that profitability can grow from adding new customers.

Flutter‘s conference call kicks off 4:30 am Eastern time. Check the company’s results page for a replay of the call.

What will FanDuel report for share?

As of early May, FanDuel said it remained in customer acquisition mode. That would continue while cost to acquire and lifetime value remain as strong as they were, Jackson said.

Continuing to add customers paid off in the first quarter. FanDuel held 50% of US sports betting share, up 14 percentage points from the prior year.

The company reported a 147% jump in sports betting revenue and a 43% increase in handle.

Some of FanDuel’s biggest competitors reported a mixed bag of sports betting share. BetMGM noted its sports betting share dropped 11% while DraftKings said its 35% of online share was the highest since the second quarter of 2020.

iGaming grows as well

FanDuel is grabbing new iGaming customers as well instead of mostly relying on cross-selling sportsbook customers.

Jackson said he was “really pleased” with how US players were reacting to the Reward Machine, a daily free-to-play game that can lead to casino bonuses.

Just like sports betting, BetMGM saw its iGaming share decrease while DraftKings reported it ranked first for the best gross revenue share at 27%.

How many customers from horse app?

FanDuel is also looking for customers in some of those tougher-to-tap states where sports betting has not yet been legalized, with Jackson mentioning California specifically.

The first-quarter call happened just days before the 2023 Kentucky Derby.

An update on customer acquisition from that busy horse betting weekend could be coming.

Still waiting on FanDuel stock listing

Flutter is likely eagerly awaiting the launch of its FanDuel stock listing, which should come in the fourth quarter.

The stock only sees average daily volume of around 500,000 in London. Compare that to DraftKings’ 11.3 million average daily volume.

This earnings report could be the catalyst that sends FLTR back toward its 52-week high. The stock closed at £167.25 on May 22 and opened Monday at £150.30, down 10.1% from the high.